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Problem - Brunner Corporation uses customers served as its measure of activity. During June, the company budgeted for 26,000 customers, but actually served 24,000 customers. The company bases its budgets on the following information: Revenue should be $2.80 per customer served. Wages and salaries should be $22,100 per month plus $0.70 per customer served. Supplies should be $0.50 per customer served. Insurance should be $5,200 per month. Miscellaneous expenses should be $2,100 per month plus $0.30 per customer served. The company reported the following actual results for June:
Revenue $63,800
Wages and salaries $37,100
Supplies $9,900
Insurance $5,400
Miscellaneous expense $6,200
Required - Prepare the company's flexible budget performance report for June. Label each variance as favorable (F) or unfavorable (U).
The company manufactures a variety of engines for use in farm equipment.What is Marshfield predetermined manufacturing overhead rate based on direct labor cost?
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